My take on EVs and Lithium is atm the Battery still accounts for 33% of the total cost of the EV Car down from 60% four years ago.
and Logically you would have to assume that Lithium prices would have to remain "around" where they are now to maintain the uptake in EVs. I cant see how they can squeeze producers further to lower Battery prices?.
and long term............
I'm no fortune teller and the Lithium story is still in its early stages but Margins wont be crash hot going forward for Lithium miners with prices staying around where they are now imo.
This reminds me of the situation with Aussie dairy farmers and the milk supply situation with WOW, Coles. Little profit or bust.
atm Overall ........it appears the buyers of Li hold the whip hand with Lithium pricing and will continue to imo
The future is there for EVs but how that plays out for all Lithium companies remains to be seen and with that any positive direction for their Shareprices.
GXY needs to get positive with SDV and give the Market direction with it. Mt C. isn't the Company maker!.
Below is from mid 2018, The auto companies knew back then they didn't "want to be beholden to the Chinese" ! but where are they now?
and what happened to GXY's place in all this.?
At least the Auto's got this right and crunch time is upon many Li Companies now. imo...............
Quote A.Rule "
they have done due diligence on 200 aspiring lithium miners in the world and believe only 10 of them will survive"
https://thewest.com.au/business/dig...e-to-secure-lithium-says-galaxy-ng-b88561463z
"Galaxy Resources chief financial officer Alan Rule says the lithium miner has been in direct contact with major US and European car manufacturers looking to lock in a secure supply of lithium for batteries that will power their electric vehicle models in the years ahead.
Echoing comments by the managing director of fellow lithium minerPilbara Minerals, Ken Brinsden, at the Diggersand Dealers Mining Forum in Kalgoorlie yesterday, Mr Rule told delegates the big auto manufacturers had done their homework and didn’t want to be caught short.
“They have told us that they have done due diligence on 200 aspiring lithium miners in the world and believe only 10 of them will survive,” he said.
“Not all deposits are of the right quality. They need battery-grade lithium and they want to deal directly with miners because they don’t want to be beholden to Chinese suppliers.”"
